Endo Reports Q1 2024 Financial Results

Endo, Inc., a newly established entity that recently acquired the majority of Endo International plc (EIP)'s assets, has released the first-quarter 2024 financial results for EIP. This announcement aligns with EIP’s reorganization plan. Here’s a detailed breakdown of the financial performance of EIP for the first quarter of 2024.

Overview of Financial Results

EIP reported total revenues of $420 million for the first quarter of 2024, reflecting a 19% decline from the $515 million reported in the same period in 2023. This downturn was primarily attributed to reduced earnings in the Generic Pharmaceuticals segment. The net loss for the first quarter of 2024 was $154 million, a significant increase from the $3 million loss observed in the first quarter of 2023. This escalation in losses was mainly due to higher expenses related to the Chapter 11 reorganization process and the drop in revenues.

Moreover, the adjusted net income for the first quarter of 2024 was $131 million, down from $193 million in the same quarter of the previous year, primarily driven by reduced revenues.

Segment Performance

Branded Pharmaceuticals Segment
The Branded Pharmaceuticals segment exhibited a slight increase in revenues, reaching $201 million in the first quarter of 2024, up from $198 million in the same period in 2023. Specialty Products within this segment saw a 4% rise in revenues, amounting to $148 million, compared to $142 million in the previous year. This increase was fueled by a 17% rise in XIAFLEX® revenues, which totaled $113 million, driven by higher selling prices and increased volumes, although somewhat offset by reduced SUPPRELIN® LA revenues due to lower volumes.

Sterile Injectables Segment
Revenues from the Sterile Injectables segment saw a minor decline of 3%, reaching $98 million in the first quarter of 2024, compared to $101 million in the same period the previous year. This decline was predominantly due to competitive pressures on several products, though partially mitigated by increased revenues from VASOSTRICT® and ADRENALIN® due to higher volumes.

Generic Pharmaceuticals Segment
The Generic Pharmaceuticals segment experienced a substantial 48% drop in revenues, recording $103 million in the first quarter of 2024 against $198 million in the same period in 2023. This significant decrease was mainly due to competitive pressures on varenicline tablets and dexlansoprazole delayed release capsules, with some offset from increased revenues from the lidocaine patch 5%.

International Pharmaceuticals Segment
The International Pharmaceuticals segment saw a slight revenue decline, from $18 million in the first quarter of 2023 to $17 million in the first quarter of 2024.

Cash Flow and Financial Position
EIP reported approximately $641 million in unrestricted cash and cash equivalents as of March 31, 2024. Net cash provided by operating activities was $26 million in the first quarter of 2024, down from $62 million in the same period in 2023, primarily due to decreased revenues.

2024 Financial Outlook
Endo has maintained its financial expectations for the full year ending December 31, 2024, consistent with the guidance previously provided by EIP. These projections are forward-looking and subject to various risks and uncertainties, as outlined in their cautionary statements.

Conference Call
Endo has scheduled a conference call on May 31, 2024, at 8:30 a.m. ET to discuss these financial results. The call will be accessible to registered holders of its debt and equity securities.

Non-GAAP Financial Measures
Endo has provided certain non-GAAP financial measures in this release to offer a consistent basis for evaluating performance, excluding specific items. These measures are intended to complement the financial measures prepared in accordance with GAAP.

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